Last Updated on October 29, 2026 9:42 pm by INDIAN AWAAZ

By Our Business Correspondent

Indian equity markets staged a strong recovery on Thursday, snapping a two-session losing streak as buying in information technology, banking and other heavyweight stocks lifted benchmark indices. Sentiment improved after the US Federal Reserve kept interest rates unchanged, while foreign portfolio investor (FPI) buying in the previous session provided additional support. Easing volatility and gains across most sectors further strengthened the domestic market.

The S&P BSE Sensex advanced 905.01 points, or 1.24%, to close at 74,151.04. The NSE Nifty 50 rose 237.90 points, or 1.05%, to settle at 22,936.75, moving back above the 22,900 mark. The recovery followed losses over the previous two trading sessions, during which the Sensex and Nifty had declined 0.49% and 0.24%, respectively.

The rally was broad-based, although the gains were led by select heavyweight stocks. Adani Ports and Special Economic Zone climbed 6.29%, Kotak Mahindra Bank rose 4.32% and Eternal gained 3.63%, emerging among the key contributors to the Nifty’s advance. Banking stocks benefited from renewed buying interest, while IT shares drew support from developments in the US technology sector and expectations surrounding demand for cloud computing and artificial intelligence (AI) services.

The broader market also participated in the recovery. The BSE 150 MidCap index rose 0.60%, while the BSE 250 SmallCap index gained 0.69%. The advances indicated that buying extended beyond the largest companies, although the gains in mid- and small-cap stocks were more modest than those in the benchmark indices.

Market breadth remained positive. On the BSE, 2,654 shares advanced, 1,716 declined and 225 remained unchanged. The figures indicated wider participation in the day’s gains, even as a substantial number of stocks continued to trade lower.

The NSE India VIX, which measures the market’s near-term expectation of volatility, fell 6.43% to 15.20. A decline in the volatility gauge generally signals reduced demand for protection against sharp market swings, although it does not guarantee that markets will remain stable.

Fed Decision and Global Cues

The US Federal Reserve’s decision to maintain its benchmark interest-rate target range at 3.75%-4.00% was an important global market development. The decision, taken by a 10-2 vote, came alongside an assessment that US economic activity had strengthened, even as inflation remained elevated.

The two dissenting officials favoured a 25-basis-point rate increase, highlighting continuing differences over the appropriate policy response to inflation. Following the announcement, market pricing reportedly raised the implied probability of a December rate hike to 85%, from 78.3% a day earlier, according to CME FedWatch data.

The decision to hold rates steady did not eliminate uncertainty over the future direction of monetary policy. Investors remained focused on inflation, economic growth and the timing of any further policy adjustment. Higher-for-longer US interest rates can affect emerging markets by supporting the dollar, influencing capital flows and increasing the relative attractiveness of dollar-denominated assets.

Domestic investors also tracked the latest trends in foreign investment. FPI buying on Wednesday helped improve sentiment, although a single session’s inflows do not necessarily indicate a sustained reversal in foreign portfolio flows.

In the US, all three major equity indices closed higher on Wednesday. The Dow Jones Industrial Average gained 97.53 points, or 0.19%, to 52,475.10. The S&P 500 rose 21.37 points, or 0.28%, to 7,743.97, while the Nasdaq Composite advanced 72.04 points, or 0.27%, to 26,549.85.

Technology stocks remained in focus as investors assessed corporate earnings and the substantial investments required to expand AI infrastructure. Microsoft shares rose more than 4% in extended trading after the company reported stronger-than-expected cloud revenue. Azure growth accelerated to 48% in its fiscal first quarter, exceeding its previous guidance and reinforcing expectations of continued demand for cloud and AI services.

Alphabet, however, faced a sharply different market reaction. Its shares fell more than 7% in after-hours trading following results that reportedly fell short of analysts’ expectations. Revenue increased 25% year on year to $127.58 billion, against a forecast of $127.97 billion. Net income declined to $26.17 billion from $34.98 billion a year earlier, while earnings per share came in at $2.12, below estimates of around $3.01. An $8.7 billion loss on equity investments weighed on reported earnings.

Google Cloud remained a bright spot, with revenue surging 103% to $30.7 billion. Nevertheless, concerns about capital expenditure, data-centre investment and the pace at which AI spending will generate returns continued to influence investor sentiment.

European shares traded higher on Thursday as investors assessed corporate earnings and the Fed’s decision, while awaiting the European Central Bank’s policy announcement. Most Asian markets, however, ended lower amid concerns over technology valuations, mixed reactions to US corporate results and elevated crude oil prices.

Crude Oil, Bonds and Currency

Developments in commodity and currency markets remained important for domestic equities. Brent crude futures for December 2026 delivery declined $1.38, or 1.24%, to $110.26 a barrel. Despite the daily decline, crude remained elevated, keeping concerns about India’s import bill, inflation and corporate input costs in focus.

India’s 10-year benchmark government bond yield eased to 7.399%, compared with 7.440% at the previous close. Lower bond yields can support equity valuations by reducing the relative cost of borrowing and the discount rate applied to future corporate earnings, although the effect varies across sectors and depends on the broader economic outlook.

The rupee edged higher to 95.2700 against the US dollar from its previous close of 95.2800. The US Dollar Index, which measures the greenback against a basket of major currencies, rose 0.02% to 102.21. The US 10-year Treasury yield declined 1.03% to 4.999%, according to the supplied market data.

On the domestic commodity exchange, MCX gold futures for delivery on 4 December 2026 fell 0.32% to Rs 1,43,243. Movements in gold, crude oil, bond yields and the rupee continued to provide important signals for investors assessing inflation risks and the outlook for interest rates.

Stocks in Focus

Corporate earnings and order announcements triggered sharp movements in several individual stocks.

Hero MotoCorp declined 4.09% despite reporting a substantial year-on-year improvement in quarterly earnings. Its adjusted net profit increased 42.21% to Rs 1,861.33 crore in the September quarter of FY27, compared with Rs 1,308.89 crore a year earlier. Net sales rose 22.52% to Rs 14,970.50 crore from Rs 12,218.39 crore. Adjusted profit was also higher than the Rs 1,412.36 crore reported in the preceding quarter. The share-price decline indicated that strong reported growth did not automatically translate into buying interest.

Asian Paints gained 0.76% after its consolidated net profit rose 7.45% year on year to Rs 1,067.6 crore in Q2 FY27. Revenue from operations increased 16.92% to Rs 9,953.89 crore.

United Spirits advanced 5.06%, even though its consolidated net profit declined 7.76% to Rs 428 crore. Net sales increased 2.87% to Rs 3,264 crore compared with the corresponding quarter a year earlier.

Jupiter Wagons jumped 6.66% after securing a Rs 1,140-crore order, including taxes, from the Ministry of Railways. The contract covers the manufacture and supply of 2,583 BOXNHL and BOXNS wagons, which are used to transport bulk commodities such as coal and iron ore.

IT services company Birlasoft surged 11.89% after reporting a 37.5% year-on-year increase in consolidated profit after tax to Rs 159.6 crore. Revenue from operations rose 6.6% to Rs 1,416.2 crore. However, profit declined 0.8% sequentially from Rs 161 crore in Q1 FY27, while revenue increased 2.7% from Rs 1,379.4 crore.

Symphony gained 1.70% after consolidated net profit rose 41.18% year on year to Rs 24 crore and revenue increased 30.95% to Rs 275 crore. Both profit and revenue declined sharply from the preceding quarter, when they stood at Rs 40 crore and Rs 378 crore, respectively, reflecting the importance of seasonal and sequential comparisons.

Pidilite Industries rose 2.33%. Its standalone net profit increased 10.4% to Rs 647 crore, while net sales advanced 21.7% to Rs 3,982 crore. Underlying volume growth stood at 10.7%. EBITDA increased marginally by 0.5% to Rs 811 crore, but the EBITDA margin contracted to 20.4% from 24.7% a year earlier, highlighting pressure on profitability despite higher sales.

V-Guard Industries climbed 7.90% after consolidated net profit rose 71.04% year on year to Rs 111.67 crore. Revenue from operations increased 38.18% to Rs 1,852.89 crore. Sequentially, however, net profit fell 14.26%, while revenue rose 2.33%.

Market Outlook

Thursday’s advance restored some confidence after the preceding sessions of losses, with gains in large-cap stocks, positive market breadth and lower volatility supporting the recovery. The next direction of the market is likely to depend on corporate earnings, foreign investment flows, crude oil prices, currency movements and expectations surrounding US monetary policy.

Investors will also monitor US economic releases, including third-quarter gross domestic product, personal income and spending data, the Personal Consumption Expenditures price index and initial jobless claims. The PCE index is the Fed’s preferred inflation measure, making it particularly important for assessing the outlook for interest rates.

The day’s rally was encouraging, but its sustainability will depend on whether buying broadens further and earnings justify prevailing valuations. Elevated crude prices and uncertainty over the path of US rates remain potential sources of volatility.

Disclaimer: This report is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Investors should consult a qualified financial adviser before making investment decisions.